AI-powered permitting and construction workflow platform PermitFlow has closed a $54 million Series B round, giving the New York–based startup a fresh infusion of capital to broaden its technology suite and grow its workforce. The round was led by Accel and included participation from Kleiner Perkins, Felicis, Initialized Capital, Altos Ventures, Y Combinator and other investors, reflecting substantial confidence in the company’s rapid scaling potential.
PermitFlow said the Series B money will help the company expand its suite of AI agents, which currently support permitting, inspection coordination, license management and other pre-construction tasks that traditionally slow projects down. The company plans to deepen its automation capabilities and deliver more specialized AI tools that can reduce administrative burdens for builders, developers and municipalities.
According to the company, its technology has already been deployed across a range of projects — from unblocking permitting delays in Los Angeles wildfire reconstruction to supporting municipalities and builders working to lower the cost of new housing. These initiatives tie into PermitFlow’s broader mission to modernize the construction industry, a sector that has struggled with outdated systems and slow regulatory processes.
“Builders are the backbone of America. They put families in homes, build critical infrastructure and shape our communities. Yet the systems behind that progress are decades old. We’re changing that by bringing AI to construction and empowering builders to build without barriers,” Francis Thumpasery, CEO of PermitFlow, said in a statement.
The company’s AI engine is powered by a proprietary dataset of more than 12 million municipal data points, allowing its models to navigate complex permitting requirements that differ across thousands of cities and jurisdictions. PermitFlow’s platform automates tasks across the entire pre-construction pipeline, from initial feasibility checks and document generation to milestone tracking and compliance verification.
With the new funding, PermitFlow aims to grow its engineering, operations and municipal partnerships teams to support its expanding customer base, which includes homebuilders, commercial developers and construction management firms. The company is also investing heavily in R&D to strengthen the accuracy, reliability and regulatory compliance of its AI agents.
Industry observers say the Series B round underscores a broader trend: the rapid adoption of AI tools that can address construction bottlenecks, reduce costs, and help the industry work through labor shortages and permitting backlogs. By targeting one of the most time-consuming phases of construction — permitting and pre-development — PermitFlow is positioning itself as a core enabler of faster project delivery.
As cities work to modernize their permitting systems and developers push for streamlined approvals, solutions like PermitFlow’s are expected to become increasingly essential. With the latest funding, the company is now preparing for the next stage of its growth, building on the momentum generated since its earlier funding rounds.
Originally reported by Mia Goulart in Built In.
